Kaohoon Morning Brief – 12 September 2022

1) FSS expects limited upside as investors will monitor upcoming US inflation for economic directions

Finansia Syrus Securities (FSS) expected the SET’s sideways-up movement to continue. Its crucial resistance is at 1,665 points (+/-). The market has a short-term positive sentiment from funds flowing back into risk assets. However, FSS stated that it thought the upside is limited. Also, investors should monitor U.S. inflation for August, which is due tomorrow. The consensus expects U.S. headline inflation at 8.1% Y-Y and core at 6.1% Y-Y. If they beat the estimate, it would pressure the market to turn bearish again. Also, it would reaffirm the likelihood that the Fed would hike its policy rate by another 0.75% next week. Currently, the probability increases to 90%. Crude prices increased again due to supply concerns. Besides, winter is coming in the next two months.

FSS still focused on investing in value and domestic plays, particularly ones with lower than their historical average valuations and unique catalysts. For mid-to-long-term investments, the accumulating point remains at 1,600-1,610 points (+/-).


2) Russia reportedly attack Kharkiv power grid, leaving civilian in the dark

Kharkiv, Ukraine’s second largest city and the biggest population center closest to Russia’s border, has been living in total darkness on Sunday night. The government accused the Russian military for attacking civilian infrastructure after the report of Ukrainian soldiers pushing Russia back.

“No military facilities, the goal is to deprive people of light & heat,” Ukrainian President Volodymyr Zelensky tweeted late Sunday after the attack.


3) Biden plans to put more restrictions on chip-making equipment bans to China

The Biden administration plans to further curb U.S. shipments of semiconductors used for artificial intelligence and chip making toods to China next month.

Reuters reported by citing people familiar with the matter saying that the Commerce Department is expected to announce new regulations based on earlier restrictions this year to forbid U.S. companies to export chip-making equipment to Chinese manufacturers that produce advanced semiconductors unless certain U.S. companies had a license to do so.